Defiance ETFs has expanded its lineup of thematic products with the launch of two new funds aimed at capitalizing on the artificial intelligence boom while reducing exposure to areas the firm believes could face disruption from the technology. The new offerings — the Defiance US 100 Tech AI Moat ETF (NASDAQ:AIX) and the Defiance US 100 Tech Ex Software ETF (BATS:XIGV) — both draw from the Nasdaq-100 universe but take distinct approaches to identifying potential AI beneficiaries.
• Defiance US 100 Tech AI Moat ETF stock is holding steady today. Where is AIX stock headed?
The launch comes as investors increasingly look beyond headline AI winners and focus on which businesses stand to capture long-term value from the technology.
AIX seeks exposure to companies that the underlying index identifies as possessing durable “AI moats,” including proprietary data, embedded AI capabilities, advanced semiconductor technologies and critical infrastructure.
XIGV is built around the view that generative AI and AI agents could pressure traditional software business models by automating coding, workflows and features that have historically supported subscription revenues. Both funds currently have significant exposure to semiconductor companies, reflecting the industry’s central role in powering AI applications.
Key features of AIX
- Tracks the Indxx US 100 Tech AI Moat Index.
- Starts with the 100 largest Nasdaq-listed non-financial companies.
- Screens out firms that the index methodology identifies as most vulnerable to AI-driven disruption.
- Focuses on technology and technology-related industries.
- Scores companies based on:
- Research and development intensity.
- AI business exposure.
- Verifiable AI investment and development.
- Holds the 30 highest-scoring companies.
- Weighted by market capitalization with a 4.9% cap on individual holdings.
- Rebalanced semiannually.
- At launch, the index was concentrated in semiconductors.
Key features of XIGV
- Tracks the Indxx US 100 Tech Focused Ex Software Technology Index.
- Marketed as the first U.S.-listed ETF targeting the Nasdaq-100 while excluding software companies.
- Begins with the 100 largest Nasdaq-listed non-financial companies.
- Removes companies deriving 50% or more of revenue from software-focused activities.
- Excludes segments including:
- Application software.
- System software.
- Cloud infrastructure.
- Cybersecurity.
- Engineering and data platforms.
- IT services.
- Emphasizes semiconductor, hardware and connectivity companies.
Photo: Shutterstock
Recent Comments